U.S. steel prices seen higher in 2005

LeslieWines

NEW YORK (CBS.MW) -- U.S. steel prices through October were the highest of any country in the world, and early indications point toward further increases in the first and second quarters of 2005, according to an American Institute for International Steel report.

The Washington-based institute didn't provide current specific price figures for any nation but said that, along with China, the U.S. market is an important source of upward momentum for steel industry prices.

"While early in the year [2004], most steel market analysts believed that the surge in market prices was heavily driven by demand for steel raw materials and steel products in China, it quickly became clear that the U.S. market had its own head of steam, as prices in the U.S. surged over world and Chinese market prices by the middle of the third quarter," the institute said.

Citing announcements from some U.S. mills, the report said it appears steel market prices will strengthen sometime in early 2005.

"Further some pundits believe that by the second quarter, some prices could even eclipse the lofty levels seen in the early fall of this year," the institute said.

The study also estimated that 3.5 million tons of steel were imported into the U.S. in October, up 88 percent from the same month last year.

During the first 10 months of 2004, imports totaled 29.5 million tons, up nearly 52 percent from 19.4 million tons in the comparable 2003 period.

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